Finance Ministry’s budgetary execution, far from the Gov’t optimism

A report by the Finance Ministry, released on Thursday, reads that the EU funds for Romania in Q2 were lower by RON 3.18 billion, which prevented reaching the level of revenues planned by the Government earlier this year.

The revenues from VAT were also lower, leading to a degree of revenue collection of 97.2%.

The amounts from the European Union for the 2007-2013 financial year and for the 2014-2020 financial year, collected in the second quarter of 2018, reached RON 2,650.3 million, representing 0.3% of GDP. The share of accomplishment of the quarterly collecting programme was of 45.4%, the Finance Ministry says, quoted by digi24.ro.

In Q1 the situation was quite similar: 0.5% of GDP and 63.1% respectively.

The overall revenues in Q2 amounted to RON 65,666.7 million (7.1% of GDP), the degree of accomplishing the quarterly programme being of 97.2%.

The expenditures of the consolidated state budget amounted to RON 76,173.5 million, representing 8.2% of GDP. Against the quarterly target they were completed in 96.1% share, lower by RON 3,125.2 million.

Staff expenditures amounted to RON 22,276.7 million (2.4% of GDP), completed 105% against the estimated level for Q2 2018. The larger expenditures were influenced by the local budgets (+12%) and by the institutions’ budgets (+26.5%).

Expenditures for goods and services accounted for 1.1% of GDP and were completed in a 112.2% share against the quarterly programme.

The information from the Finance Ministry cast a shadow over the optimism of PM Viorica Dancila about the ‘positive’ budgetary rectification presented on Thursday. The Premier announced the revenues to the state budget were higher by RON 6 billion.

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